Auckland and Otago lead modest lift in housing consents
There were 34,078 new homes consented in the year to August 2025, up 1.3% from the year to August 2024, Stats NZ reported.
“The number of homes consented has started to pick up in both monthly and annual terms but is still down one-third from its peak in mid-2022,” said Stats NZ economic indicators spokesperson Michelle Feyen (pictured left) in a media release.
The lift was led by multi-unit developments in Auckland and Otago. Stand-alone houses rose 1.0% to 15,755, while multi-unit homes increased 1.6% to 18,323.
Within multi-unit consents:
- 14,503 townhouses, flats, and units were consented (-0.7%)
- 2,479 apartments (+46%)
- 1,341 retirement village units (-22%)
In August alone, 3,080 homes were consented – up 6.9% year-on-year – with apartments surging from 47 to 256.
Regional picture mixed
The strongest annual gains came from Auckland (+5.4%, 14,495 homes) and Otago (+16%, 2,473 homes).
Northland (-21%), Waikato (-4.4%), and Canterbury (-1.7%) posted declines.
Westpac: Base forming, recovery delayed
Westpac senior economist Satish Ranchhod (pictured right) said consent numbers show the cycle has stabilised.
“It looks like we’ve reached a base in the residential building cycle, though a material turn higher is still a way off,” Ranchhod said in a Westpac analysis.
The bank noted residential consents rose 5.8% in August after a similar 5.3% lift in July, keeping the 12-month trend stable at around 34,000 consents.
“After falling sharply through 2023 and 2024, homebuilding activity has been tracking sideways since the start of the year,” Ranchhod said. “The stabilisation in consent numbers over the past year indicates that we’re unlikely to see further significant declines over the remainder of this year (though some individual construction firms are still facing tough conditions).”
Seeds of recovery in place
Looking ahead, Westpac pointed to cheaper borrowing costs and rising sales volumes as early signs of a future pick-up.
“There have been significant falls in borrowing costs over the past year. And while house price growth remains muted, house sales have picked up off their lows. We’re also starting to hear rumblings from developers and builders that they’re looking at bringing new projects to market over the coming year, supported by lower financing costs,” Ranchhod said.
“Even with those encouraging (albeit tentative) signs, a material upswing in home building isn’t likely before the middle part of next year.”
Non-residential sector stabilising
Westpac said signs of stabilisation are also evident in non-residential construction, supported by industrial and office projects. However, retail space development remains limited amid soft retail spending.
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